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Parental Financial Help can backfire - beware

If your newly qualified , moneywise graduate is seeking employment without much success and as a responsible parent you helped out them out financially then they may have money in the bank. This is bad news as they will not receive job seakers allowance, or it may be reduced considerably.
Your offspring will be rewarded with the full allowance if they end up with nothing in the bank when they graduate.
It does not pay to help them out - keep your money to yourself and make sure they've nothing. If you've saved for their future you'll have wasted your money!
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Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    lol you what?
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    I assume he's talking about the effect on means tested benefits when the claimant has savings.

    I suppose it might be relevant for all those parents who just dump over £6K in their offspring's account; hands up all those who're in this situation!
  • sujester
    sujester Posts: 73 Forumite
    Part of the Furniture Combo Breaker
    WJC wrote: »
    keep your money to yourself and make sure they've nothing.

    Good advice, thanks. Just off to break the news to my son who is off to uni this year. :snow_laug
  • Indie_Kid
    Indie_Kid Posts: 23,097 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I suppose it might be relevant for all those parents who just dump over £6K in their offspring's account; hands up all those who're in this situation!

    As parents do!
    Sealed pot challenge #232. Gold stars from Sue-UU - :staradmin :staradmin £75.29 banked
    50p saver #40 £20 banked
    Virtual sealed pot #178 £80.25
  • GlasweJen
    GlasweJen Posts: 7,451 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Where did I go wrong? My parents forgot to give me the 6 grand, can i claim it back off them now?
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    GlasweJen wrote: »
    Where did I go wrong? My parents forgot to give me the 6 grand, can i claim it back off them now?

    I expect you can sue and get compensation, if you go about it the right way!
  • bestpud
    bestpud Posts: 11,048 Forumite
    edited 6 January 2010 at 10:51PM
    How much interest shall I add to my parents debt? :cool:
  • bestpud
    bestpud Posts: 11,048 Forumite
    sujester wrote: »
    Good advice, thanks. Just off to break the news to my son who is off to uni this year. :snow_laug

    I'm sure he will be thrilled! :D
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Just coming from the otherside, me and my best friend, who have quite 'well off' families and have had financial help, have done very through it. Although I haven't got a graduate job, my placement year has been with a very good company and I aim to graduate there.

    Plus it's helped me learn a lot more about budgeting, savings etc.

    Although of course, I know others who are the opposite, get financial help, then spend it all...
  • bestpud
    bestpud Posts: 11,048 Forumite
    Lokolo wrote: »
    Just coming from the otherside, me and my best friend, who have quite 'well off' families and have had financial help, have done very through it. Although I haven't got a graduate job, my placement year has been with a very good company and I aim to graduate there.

    Plus it's helped me learn a lot more about budgeting, savings etc.

    Although of course, I know others who are the opposite, get financial help, then spend it all...

    So how would you feel if you had to claim JSA and were told you couldn't because you have money in the bank?

    Do you think your parents would regret giving you the money?
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